Horseracing and Bloodstock Industries

Question

15:18:00

Asked by

To ask His Majesty’s Government what steps they are taking to support the horseracing and bloodstock industries.

The noble Lord has been a tireless champion for horseracing, which forms such a key part of our national sporting story. I am sure he is looking forward to the start of the Glorious Goodwood festival tomorrow and, like me, will have been thrilled to see Team GB’s first gold medal of the Paris Olympics in eventing this lunchtime. The Government recognise the significant contribution that racing makes to British culture and its particular importance to the British economy.

My Lords, I welcome the Minister to her place. She may have anticipated my sporting plans for later this week. Racing is the country’s second biggest spectator sport; it is worth over £4 billion a year to the economy, and it contributes to the Exchequer, employing tens of thousands of people. Yet it is not a sport that is in as good a financial state as it should be. The reason is that it receives a far lower share of betting turnover than in any of our peer group countries. As a result, prize money is far lower than in other countries, which poses a threat to the UK’s racing industry, which is a world centre of excellence. I encourage the Government not to repeat the mistakes made, regrettably, by the previous Government and to look again at the clumsily introduced affordability checks, which have cost the racing industry some £50 million a year in lost revenue. Also, will they return to the table with the betting industry and the racing industry to secure an increase in the levy, which is long overdue, and look at its reform, making it index-linked for the future? None of that would cost the Exchequer a penny, but it would be of immense importance to the industry.

The Government entirely recognise the importance of the horseracing industry but also of the horserace betting levy to the industry and to the financial sustainability of the sport, which, as the noble Lord rightly states, contributes a considerable amount to the economy. I would be very happy to meet him to discuss the topic further and understand his views on the issue.

My Lords, could the Government go a little further when it comes to things such as the levy, when remembering that the vast majority of people who work in racing are doing so on something like the living wage? They are undertaking an activity that is often physically dangerous. A half-tonne of fight-or-flight response animal can take a fairly heavy toll on the human body in many circumstances. Can the Government make sure that they look at something so that this workforce is properly protected and supported?

The Government are committed to making sure that the sector is sustainable, but I would be interested in discussing further with the noble Lord the issues that he raises. We are committed to making sure that the levy is administered efficiently to best support racing. It is too soon for me to commit to the shape of future policy.

My Lords, I remind the House of my entries in the register of interests—specifically, my role as senior steward of the Jockey Club—and welcome the Minister to her place. If someone in the UK places a bet on racing overseas—in Ireland, for example—Irish racing benefits. If someone in Ireland places a bet on UK racing, Ireland benefits. Does the Minister think that is unfair? If she does, as I do, will she commit to extending the horseracing levy to bets placed in the UK on international racing and, in doing so, level the competitiveness between British and international jurisdictions?

I thank the noble Baroness for her welcome. As she will be aware, the previous Government undertook a review that concluded in April. It is too soon for us to comment on the process or what might emerge from that, but we are keen to work with all parties and explore all the evidence before setting out next steps.

My Lords, further to the two questions just asked by my noble friends, will the Minister reflect on the point regarding Ireland? The discrepancy in the prize money between the UK and Ireland has become very severe, with the result that a number of UK owners are now locating their horses in Ireland. What can be done specifically to address that problem?

I am aware of the difference between how different countries administer this. As I mentioned in my response to the noble Baroness, Lady Harding, the previous Government undertook a review that concluded only in April. It is too soon for us to comment on that process, but I am very keen to work with all parties and explore all the evidence before setting out next steps.

It is good to see a fair degree of agreement across the House that horseracing is very important. There are 4.8 million racegoers, and there is support right across the country, including from Her Majesty Queen Camilla and Lady Starmer. Does the Minister accept that the sport is disadvantaged? The competitiveness issue has been raised relative to France and Ireland on prize money, but it is also relative to Ireland in support for its bloodstock industry. How do the Government plan to remedy the situation, and is it possible for us to have a timetable?

As I have said to other questions from noble Lords, the previous Government undertook a review that concluded only in April. I am committed to working with noble Lords across the House to make sure that we get the right arrangements for the industry and the levy is administered efficiently to best support racing. It is too soon, however, for me to commit to the shape of future policy.

My Lords, I declare my interest as in the register. While we all want to tackle problem gambling, very wealthy punters who can comfortably sustain large losses really are not the issue. However, by driving them to the black market with poorly targeted affordability checks, the finances of racing have, as the Minister has heard, gravely damaged both a major national sport and an important rural industry. Will she make sure that any regulatory action proposed by the Gambling Commission is sensible and proportionate and, above all, avoids unintentional consequences?

Most people gamble without issue, but we recognise the huge impact that harmful gambling can have on individuals and their families. As the noble Lord states, however, there is a difference between those who can gamble without issue and those who come to serious harms, both in their lives and those of their families. As stated in the Government’s manifesto, we are absolutely committed to strengthening protections for those at risk. The Gambling Commission’s new survey which came out last week really helps to show the wider picture of gambling behaviour across Great Britain, and we will consider its findings very carefully.

My Lords, I am mystified again. With all the knowledge on that side, with the former Member for the South Downs and the noble Baroness, Lady Harding, who is—what is she in the Jockey Club?

Chief steward.

Chief steward! She knows a thing or two about Covid as well. With all the knowledge on that side, why has nothing been done in the last 14 years to deal with this matter?

With respect to the previous Government, they undertook a review of the levy, but it concluded only in April. If noble Lords bear with me, I will return to the matter as soon as is practical using a very evidence-based approach to make sure that we get the right arrangements in place for this important sector.

My Lords, following our departure from the European Union, the transportation of racehorses around Europe became much more difficult. What steps can be taken to assist that procedure?

Shall I just say yes? My understanding was that there were arrangements in place to facilitate the movement of racehorses around Europe. I will double check the facts on that and write to the noble Lord.

My Lords, considering the issues that have been raised today, would my noble friend—whom I welcome to the Front Bench—consider meeting her ministerial equivalent in the Irish Government? Would she also encourage the British Horseracing Authority and the Irish Horseracing Regulatory Board—which is all-Ireland—to meet to discuss the various industries? In my own area, we have a racecourse, and it is vital to the local economy and the tourism industry.

I would be delighted to meet my equivalent in the Irish Government, and I thank the noble Baroness for her question.